Kenya has issued a call for tender bids to repurchase its $2.0 billion (KES 321.6 billion) 6.85% notes set to mature on June 24, 2024.
“The Republic of Kenya today announces its invitation to eligible holders of its outstanding 2 billion dollars 6.87 percent notes due 2024 for repurchase by the issuer for cash subject to maximum tender amount,” the government said. Kenya in the plan would buy the notes and pay interest accrued on the ten-year debt.
The maximum amount that the government will repurchase will be determined by how much it raises in an offering of new securities that will be priced on February 12. The buyback opportunity, offered at per value and inclusive of accrued interest payments, will conclude on February 14.
Kamau Thugge, governor of the Central Bank of Kenya (CBK), on Wednesday 7, hinted at the buyback plan, noting that the global debt environment was positive. “There is a window for Kenya to return to global markets to refinance the 2 billion dollars Eurobond maturity in June,” Thugge said.
He noted that Cote D’Ivoire’s January 2024 issuance and Benin’s February bonds, which raised 2.6 billion dollars and 750 million dollars, respectively, showed Kenya stood a chance to succeed.
CBK increased its benchmark rate to 13 percent, the highest point since September 2012, from 12.5 percent in a bid to contain inflation, save the shilling that declined about 27 percent last year and the foreign exchange reserves.
The delay in executing the repurchase plan had raised fears of Kenya’s ability to repay the debt as it grappled with rising inflation and declined forex reserves.
